Nikkei bounces after slide as yen rally loses steam

3 Min Read

* Exporters rebound after being hit Monday by yen’s surge

* Showa Shell, Ono Sokki advance after revising up profit outlook

* Air conditioner makers rise amid heatwave

By Shinichi Saoshiro

TOKYO, July 24 (Reuters) - Japan’s Nikkei share average bounced on Tuesday, trimming losses from the previous day as the yen’s rally stalled and shored up exporters, while upbeat forecasts lifted shares such as Showa Shell and Ono Sokki as the earnings season got underway.

The Nikkei ended the day up 0.51 percent at 22,510.48.

The index had fallen 1.3 percent on Monday as the yen soared versus the dollar after U.S. President Donald Trump expressed displeasure about the greenback’s strength and on reports the Bank of Japan is debating changes to monetary policy settings.

The dollar traded around 111.30 yen, having pulled back from the previous day’s low of 110.75.

“After being oversold yesterday, the market has managed to bounce as the yen’s rally has cooled,” said Hiroki Takashi, chief strategist at Monex Group.

“But the rebound lacks strength with the market still wary after yesterday’s fall. A measure of calm is likely to return when the buzz over the BOJ fades - the central bank has shown it is poised to hold down bond yields through special JGB buying operations - and allows the yen to stabilise in turn.”

Showa Shell Sekiyu advanced 2.03 percent after the oil refiner raised its net profit forecast for the first half of 2018 to 46 billion yen ($413.26 million) from the previous 26 billion yen, amid a rise in crude oil prices during the period.

Surveying equipment maker Ono Sokki jumped 6.01 percent as the company raised its operating profit forecast for the year through December 2018 to 1.05 billion yen from 900 million yen.